Perceptions of artificial intelligence service-chatbots and brand affection in the hotel industry in Australia

The introduction of Artificial Intelligence (AI) powered chatbots has changed how brands interact with consumers, particularly in the hospitality industry. Hotels have incorporated AI powered chatbots to provide automated services such as check-in, check-out, bookings, information and 24/7 customer service. Brands are communicating with consumers in automated, personalised, and innovative ways, creating more engagement and interaction with consumers. However, weaknesses in functionality, efficient problem-solving, and connecting with consumers on an emotional level persist. Despite the perceived weaknesses, the worldwide alert caused by the coronavirus disease (COVID-19) encouraged the hospitality industry to expedite their adoption of AI powered services to avoid physical interaction and prevent the virus from spreading. The COVID-19 pandemic severely impacted the hotel industry and forced consumers to change their interactions with hotel brand services. Through the lens of previous studies, this research project maintains that consumer awareness about interacting with an AI supported platform may impact on how luxury brand experiences are perceived. Although, there is a considerable body of literature relating to the use of AI in the service and hospitality industries, no research explores the creation of brand affection and the impact during the pandemic in Australia. This study aims to explore the perceptions of consumers towards AI service chatbots and brand affection in the hotel industry in Australia. It draws on a single case study of Hilton Hotels in Australia. I collected two data sets for analysis, one from in-depth, open-ended interviews with Australian guests and the second from Australian hotel employees. The research reveals that participants don’t often recall their first interaction with chatbots, but they remember whether they were efficient and useful. Participants consider AI service chatbots to be part of the range of consumer services, and generally have a positive perception of them. Participants express some concern about job loss in the hospitality sector. However, they felt happy to use them during the COVID-19 pandemic. Some participants confuse the concept of a chatbot with other technological tools like QR codes. They associate the brand’s technological innovation with brand care. These findings contribute to the hospitality industry, developments in customer service and AI chatbot research design and implementation, and the hotel and hospitality industry in Australia, by providing insights about customer experiences of AI powered chatbots.